Question
(CH 4) Perry, Inc. owns a 80% interest in Brown Corp. During 2018, Brown sold $200,000 in merchandise to Perry at a 25% gross profit.
- (CH 4) Perry, Inc. owns a 80% interest in Brown Corp. During 2018, Brown sold $200,000 in merchandise to Perry at a 25% gross profit. Twenty percent of the goods are unsold by Perry at year end. The non-controlling interest will receive what gross profit as a result of these sales?
|
| a. | $0 |
|
| b. | $8,000 |
|
| c. | $40,000 |
|
| d. | $50,000 |
I am having problems with calculations below I'm not sure if I am on the right track or not.
| Brown Sales to Perry | Perry Sales of Merch to others | Goods in ending inventory | |
| Sales | $200,000 | $160,000 | $40,000 |
|
Gross profit percentage |
25% |
80% | |
|
Gross profit realized |
_____________ | ||
|
NCI portion |
_________% | ||
|
NCI gross profit |
_____________ |
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Edi Audit And Control
Authors: I. Walden, A. Braganza
3rd Edition
1855542080, 978-1855542082
